November 15, 2001	Thursday	Shaba’an 28, 1422

KARACHI, Nov 14: The new parameters of sales tax audit the Central Board of Revenue (CBR) and trade and industry have agreed upon are being notified in a day or two, official sources said.

The parameters are expected to give a big relief to business community that had been agitating against more than one and ‘cumbersome procedure’ of sales tax audit in a fiscal, which requires a very large number of supporting documents and evidences.

After entering into parleys with the high-ups of the CBR, the FPCCI finalized its proposals, which were submitted to the member, sales tax, Falak Sher in the last meeting held on Oct 30.

The sweeping powers given to revenue collectors under Sales Tax Act 1990 had been the main cause of slow registration under the sales tax, as the business community had never been comfortable with these powers of collectors who often used them to twist arms of taxpayers.

Under the sales tax act, a collector could ask a taxpayer to submit details and statements of other sources of income such as wealth and income tax.

According to new parameters of audit all the four category of taxpayers — importers, manufacturers, commercial exporters and manufacturers-cum-exporters — will now have to submit only those documents for audit, which are totally related to its trade.

However, in case of tax evasion, tax fraud or other exceptional cases, auditor with the prior approval of the collector, sales tax, can call any other record as per requirement.

The FPCCI team led by member, managing committee, chairman, Sales Tax committee Sheikh Shakil Ahmed Dhingra, told Dawn that the CBR has once again sought their consent for issuing the relevant notification in this regard.

He said that the CBR was even now ready to accommodate if any changes needed to be made in these parameters. However, he said that business community is in full agreement with new parameters and feels that all their demands have been met.

Under the newly laid down parameters of sales tax audit the importers will have to submit six documents— bill of entry, input register, sales invoices, stock register, monthly returns and bank statement (to ascertain the payments of Rs50,000 and above).

Similarly, a manufacturer will have to submit ten documents related to its trade— purchase invoices, bills of entry, input register, sales invoices, output register, stock register, monthly returns, monthly production reports, raw material consumption certificates and bank statement to ascertain payments upto Rs50,000 or above.

The commercial exporters will also have ten documents for audit purposes — purchase invoices, input register, sale invoices, output register, stock register, monthly return, analysis certificates, bank credit advice, bank statement to ascertain payments of Rs50,000 and above.

The manufacturer-cum-exporter will have to submit 13 documents which are highest in number and include purchase invoices, bill of entry, input register, sales invoices, output register, stock register, monthly returns, monthly production reports, raw material consumption certificates, analysis cards, bank credit advice and bank statement to ascertain payments of Rs50,000 and above.